According to new research from Payments UK, a record number of 44 billion payments will be made in the year 2024 which will be due to the increased use of digital payments.
Growth in usage of card, internet and mobile banking services has been seen in abundance recently and 771 million one-off payments were processed in 2014 and is expected to reach 1.94 billion by 2024. Alongside this, 4.2 billion direct debits are predicted to be made in 2024.
These forecasts highlight that over the next decade more payments are expected to come from debit cards and consumers will be less likely to use cash because of contactless technology. “In 2014 debit card payments represented 26% of consumer payment volumes. By 2024 this is projected to rise to 42% of consumer payment volumes – equivalent to an average of 282 debit card payments per person,” Payment UK revealed.
However, cash machines will remain the main method of obtaining cash in the next decade and 2.5 billion withdrawals are set to be made in 2024, “with the value withdrawn predicted to rise from £189 billion in 2014, to a peak of £196 billion in 2019, before falling slightly to £192 billion in 2024.”
Last year, only 1.1% of payments were completed using cheques and is expected to decline to 0.4% by 2024.
Apps are a critical part of treasury's shift into mobile banking as 67% of treasury and corporate finance professionals said mobile banking services are of particular interest to them in a recent survey.
The fact that the world’s biggest technology firms are branching out into the physical world is a huge opportunity for traditional business models, said inspirational speaker Laurent Haug told treasurers at the BNP Paribas Cash Management University.
It’s no secret that technology is rapidly changing the face of treasury. Joseph Reger, fellow and chief technical officer in EMEIA at Fujitsu, believes that 2018 will be a coming of age for both artificial intelligence and the Internet of Things (IoT).
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.